#02 - RFP for City Property - Laserfiche WebLink

Home Browse Search

STAFF REPORT DATE: February 15, 2023 DISCUSSION AGENDA ITEM: Request for Proposals for Purchase of City Land TO: Mayor and Council and Planning Commission SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: In 2019 as part of the settlement of the City’s lawsuit against 3M related to PFAS contamination and the impact on the city water system, the City received about 180 acres from 3M in lieu of $1.8 million. The 180 acres are located along Ideal Ave near the public works facility and extends both north and south of CSAH 14. The land is an asset of the city water fund since the lawsuit damages were in the city water fund. The City Council’s intention has been to sell the land for development. In 2019, the city received a grant from the Washington County Community Development Authority (CDA) to explore concepts for development of the land and what the cost would be to make it shovel ready. That study completed by HKGI and Focus engineering was shared with the Council in February and June 2020 at work sessions as well as the planning commission in 2020. In 2020, the cities of Oakdale and Lake Elmo agreed to work together to bring sewer to the 180 acres from the lift station on Helmo Ave and Stillwater Blvd. Formal agreements were approved in 2021 and construction was underway in 2022. The City of Lake Elmo has completed the extension of the sewer main up Ideal Ave to approximately 31st St.(just south of the railroad tracks). The City of Oakdale is expected to have the lift station upgrade complete and operational by summer 2023. Approximately $700,000 of Lake Elmo’s ARPA funds have be spent on this project in 2022. The city issued a Request for Proposals (RFP) for the land south of CSAH 14 in 2021 and entered into a purchase agreement in June 2021 which was terminated in 2022. In 2021 the Met Council approved an amendment to the comprehensive plan to guide the land south of CSAH 14 to Business Park (77 acres). In April 2022, the city council adopted an Alternative Urban Areawide Review (AUAR) for the entire 180 acres. The Council also approved a comprehensive plan amendment for the northern portion of the property consistent with the preferred alternative which includes additional land for the public works facility to expand (4 acres), a park (8 acres), commercial along CSAH 14 (4.7 acres), low density residential (LDR) along the north of the parcel (14 acres) and the remaining area of the parcel as Business Park (72 acres). The Met Council approved this new guidance in January 2023. The city has continued to receive numerous inquiries from individuals and organizations expressing interest in purchasing and/or developing some or all of the 180 acres. The next step in the process to sell and develop the land is to issue another RFP. ISSUE BEFORE COUNCIL/COMMISSION: Should the City issue an RFP? Should the 2021 RFP be updated to include the option of purchasing the land north of CSAH 14 in addition to the land south? PROPOSAL DETAILS/ANALYSIS: A copy of the 2021 RFP is included in your packet. Key parts of the proposal include not only the price but also how the applicant would develop the property, when it would be developed, what the increased tax value would be and the number of jobs created. Staff suggested a minimum purchase price of $4.5 million